2007 Best Practices Study

Agencies with Revenues Over $25,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

G. Parent Corporation

Average

20.0%

Agency is Owned by Another Corporation

“Other” includes AAA, joint venture, and another insurance agency.

Description of Parent Corporation

Financial Institution

80.0%

National Broker

0.0%

Other

20.0%

H. Plans for Future Ownership of Agency

Average

Sell to Employees/Family

61.9%

“A key component of our success has been our commitment to private ownership. Our perpetuation model has given us the ability to attract and retain the best talent in our marketplace.”

Sell to Third Party in 1 to 5 years

0.0%

Sell to Third Party in 6 to 10 years

0.0%

Sell to Third Party in 11+ years

0.0%

Merge with Privately-held Agency

4.8%

Uncertain at this Point

33.3%

A counter-intuitive statistic is how many of the largest most successful firms in the U.S. are actually headquartered in smaller cities. 68% of the largest Best Practices firms are from cities with a population of less than 1 million. A review of the firms suggests that these “super- regional” agencies often start out in a smaller city and then leverage their very strong competitive position in that city to expand into larger cities throughout their region.

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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Profile